Landmark Ruling by Rajasthan Real Estate Authority: Chankrika Kaushik Granted Refund and Interest in Ansal Housing Case

In a recent case before the Rajasthan Real Estate Regulatory Authority, Chankrika Kaushik filed a complaint against Ansal Housing and Construction Ltd. regarding a plot/unit booked in the project "Ansal Town Block-C." The complainant sought a refund and interest due to the project's non-completion and lack of possession. The case was heard by Honorable Shri Salvinder Singh Sohata, a member of the Authority. After considering the facts and examining the records, the Authority issued an order on January 6, 2023, with significant implications for the parties involved.

Background:

Chankrika Kaushik had booked plot/unit No. C-36 in the project "Ansal Town Block-C" with a registration number of RAJ/P/2017/222. The registration was initially valid until July 31, 2020, but an extension was obtained until July 31, 2022. However, the project was later classified as lapsed, indicating that it remained incomplete and possession was unlikely in the near future.

The complainant had deposited Rs. 5,01,913/- out of the total consideration of Rs. 5,28,330/-. Despite the deposit, the project was not completed, prompting the complainant to demand a refund with interest. Several hearings were scheduled, but neither party appeared before the Authority, except for the complainant's appearance on one occasion. As a result, the Authority proceeded with the case in the absence of the parties, exercising powers under the provision of Rule 32(j) of the Rajasthan Real Estate (Regulation and Development) Rules, 2017.

Legal Analysis:

Upon examining the available records, the Authority noted that the complainant had applied for allotment of unit C-36 on May 28, 2013, in New Delhi, using the prescribed proforma provided by the promoter. The allotment letter was subsequently issued on August 25, 2014, with an expected possession date in February 2016. However, the project's registration as an ongoing project under the Act on October 4, 2017, reported a completion date of July 31, 2020, which contradicted the clause 29 of the allotment application form.

The Authority emphasized that the provisions of the Act have retroactive effect, making the complainant eligible to claim a refund based on the agreed completion date of February 2016. The clause 22 of the allotment letter, which sought to deny the complainant's entitlement to a refund, was deemed legally invalid. Under Section 18 of the Act, the complainant possessed an absolute and unqualified right to claim a refund for incomplete projects.

Order and Direction:

Based on the above analysis, the Authority allowed the complaint and directed Ansal Housing and Construction Ltd. to refund Rs. 5,01,913/- to Chankrika Kaushik, along with interest. The interest was to be calculated at a rate of 8.60% of the highest Marginal Cost of Lending Rate (MCLR) of State Bank of India (SBI), plus 2%. The interest was to be applicable from March 1, 2016, excluding any moratorium notified by the Authority. Ansal Housing and Construction Ltd. was required to complete the refund and interest payment within 45 days from the date of uploading a copy of the order on the Authority's website.

Conclusion:

The Rajasthan Real Estate Regulatory Authority's order on the Chankrika Kaushik vs. Ansal Housing and Construction Ltd. case has significant implications for both parties. The order highlights the complainant's right to claim a refund with interest for an incomplete project, despite provisions in the allotment letter seeking to deny such entitlement. This case serves as a reminder of the regulatory framework's objective to protect the rights and interests of homebuyers and maintain transparency in the real estate sector.

Note: The information provided in this article about Rajasthan Real Estate Regulatory Authority (RRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the Comp. No. RAJ-RERA-C-N-2022-4883 before the Rajasthan Real Estate Regulatory Authority

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